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Don’t Fall for Bogus Loan Modification
Specialists!
| Millions of
anxious homeowners are turning to loan modification
programs, where homeowners and banks get together and try to
negotiate a more user-friendly loan. However, be VERY
cautious when contracting with companies or people calling
themselves ‘loan modification specialists’.
The Division of Mortgage Lending has received numerous
complaints about ‘loan modification companies’ offering
unrealistic loan modification options to unsuspecting
borrowers, charging excessive fees for doing what the
borrower can do for free, and then not delivering the
promised services.
The State cannot recommend or endorse any particular
company or individual offering loan modification services.
However, we are committed to helping you learn to protect
yourself and avoid being scammed. Use the tips listed on
this page to avoid losing your hard-earned money to loan mod
con artists.
Most of these scams ask homeowners for an upfront fee in
order to start a loan modification program. At best, the
homeowners may end up paying for work that is completed by
the group asking for the money when it is work that likely
could have been done for free – either directly with your
bank or through a HUD-certified counselor:
http://foreclosurehelp.nv.gov/HousingCounselors.htm. At
worst, the homeowners pay for work that isn't done at all.
Even worse, some of these con artists use the personal
information they collect during the process to steal
borrowers’ identities!
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Tips to Avoid
Loan Mod Scams |
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Ignore
unexpected solicitations, whether through
the mail, by phone or in person. Instead,
enlist the help of a
HUD-certified counselor |
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There’s a
reason rescue scam firms have
“generic-sounding” names. They are hard to
research online and hard to do background
checks on. |
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Nevada-based loan modification consultants
MUST be licensed, registered and bonded with
the Division of Mortgage Lending.
Check online or call the Division at
(702) 486-0780 in Las Vegas or (775)
684-7060 in Carson City. |
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The worst thing
a homeowner can do is avoid talking to the
bank. Many scam artists will insist on that,
telling homeowners not to talk to their
lenders to facilitate negotiations. The
moment an aid company insists on secrecy, be
extremely wary. Deal directly with your bank
or
contact a HUD-certified counselor |
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Loan
Modification Advisory
>> |
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Foreclosure
Consultant Advisory
>> |
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How do you protect yourself?
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As
always, before doing business with anyone, ask for
references and check out those references. |
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Check
with licensing agencies and trade groups. |
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However,
keep in mind that, even if someone has the proper
credentials or comes highly recommended, there’s less of
a risk of a scam, but it’s not eliminated entirely. |
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Be
extremely wary of anyone charging huge fees to help you
modify your mortgage. |
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Don’t pay for services
you can get for free on your own or from a
HUD-certified housing counselor. For a list of qualified
counselors, visit the Foreclosure Help website at
http://foreclosurehelp.nv.gov/HousingCounselors.htm.
Borrowers can also call their lender or loan servicer
directly and ask for a loan modification package to be
sent to their homes. |
If you’ve been a victim of a loan modification scam, file
a complaint with MLD at
http://mld.nv.gov/Forms.htm#complaint_forms.
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Other Resources
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